For 7 Brew franchisees in the specified states, does the 'No Waiver or Disclaimer of Reliance' provision supersede other terms in documents related to the franchise?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
The following provision applies only to franchisees and franchises that are subject to the state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, a specific provision regarding 'No Waiver or Disclaimer of Reliance' applies to franchisees and franchises subject to state franchise registration/disclosure laws in certain states. These states are California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin.
For franchisees in these specified states, any statement, questionnaire, or acknowledgment signed in connection with starting the franchise relationship cannot waive claims under applicable state franchise law, including claims related to fraud in the inducement. Furthermore, these documents cannot disclaim reliance on statements made by 7 Brew, its franchise sellers, or anyone acting on their behalf.
Importantly, the FDD states that this 'No Waiver or Disclaimer of Reliance' provision takes precedence over any other conflicting terms found in any document executed related to the franchise agreement. This means that franchisees in the listed states have additional protections under state franchise laws, and these protections cannot be undermined by standard contract language.